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Does a crisis increase the number of regular exporters?

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Listed:
  • Juan de Lucio
  • Raúl Mínguez
  • Asier Minondo
  • Francisco Requena

Abstract

The severe reduction in domestic demand between 2008 and 2013 in Spain led many firms to start exporting. We explore whether the increase in the new crisis-induced exporters led to a larger number of regular exporters once domestic demand returned to pre-crisis levels. Using an instrumental variable approach, we find that a 10% increase in new exporters led to a 9% increase in the number of new regular exporters. Since the economic crisis was not anticipated in Spain, our results establish a causal link between a fall in domestic demand and the emergence of new regular exporters.

Suggested Citation

  • Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2019. "Does a crisis increase the number of regular exporters?," Applied Economics Letters, Taylor & Francis Journals, vol. 26(20), pages 1700-1704, November.
  • Handle: RePEc:taf:apeclt:v:26:y:2019:i:20:p:1700-1704
    DOI: 10.1080/13504851.2019.1591595
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